South Korea’s logistics industry is undergoing a significant transformation, with major companies expanding their facilities in response to a sharp rise in e-commerce purchases from China, according to recent industry reports.
The Korea Customs Service disclosed that the volume of goods purchased through online shopping platforms in China saw a staggering 70.3 percent increase last year, totaling approximately 88.8 million items. The financial value of these transactions also surged by 121.2 percent, reaching around 3.3 trillion won ($2.43 billion).
As online shopping continues to gain traction, key logistics firms in South Korea are strategically enhancing their infrastructure to manage the growing flow of imports efficiently. One notable logistics provider recently commenced a 10 billion won project to expand its self-clearance facility at a major international distribution center. This expansion is expected to double the facility’s processing capacity from 1.1 million to 2.2 million boxes per month by the latter half of this year.
Another leading logistics company is considering plans to increase the capacity of its inbound customs clearance center from 2 million boxes per month to 10 million. This expansion aims to accommodate the escalating volume of shipments efficiently, as these companies handle significant percentages of imports from major online platforms.
Industry experts suggest that even with plans to establish their own logistics centers, foreign e-commerce giants are likely to continue their partnerships with local logistics providers due to the complex nature of the logistics and distribution networks required.
The planned $1.1 billion investment by one of the largest online retail platforms in the world includes $200 million allocated for constructing a new logistics center on a 180,000-square-meter site. This development is seen not just as a move to facilitate distribution within Korea but also as a strategic step to utilize the country as a pivotal node in its global logistics network.
As the landscape of global e-commerce and logistics evolves, South Korea is poised to play a critical role, benefiting both from increased business and the opportunity to streamline and enhance supply chain operations across the region.
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